Wema Bank Stocks: FHL Response.

Wema Bank Stocks: FHL Response. Authority Publication

I appreciate the spokesperson for WEMA Bank Plc who had responded to the fake news reported by a section of the media that EKSG has sold its shares in the bank.

I consider it appropriate to provide the public with necessary information to counter the wrong Impressions the news was set to create.

First is the fact that the total stocks of 666,670,000 (six and sixty six million, six hundred and seventy thousand) units in WEMA Bank Plc had not been sold and there is no plan to sell at this stage. What happened in the Stock Exchange is called nominal transfer in which case shares are transferred from one person to another without financial considerations. That happened between EKSG and FHL (the Investment Arm of the Government of Ekiti State). Our journalists are becoming too lazy to investigate and seek information hence tilting more toward mischief instead of professionalism. A call to the Ministry of Finance, or FHL would have saved them from serving the public with misinformation and by that becoming more knowledgeable.

Second, on assumption of office, I set up a dedicated desk to monitor the position of the stocks in EKSG's portfolio with a view to ensure that the market worth of the State's investment in stocks is not allowed to suffer any loss and to enhance the dividend yields. It is my position that the purpose of the acquiring the stocks was to boost non-fiscal revenue i.e. IGR of the State. 

With the support of the Board of Fountain Holdings Limited and EKSG EXCO, we were able to effect the transfer of the shares to FHL away from the bureaucratic desk where the price movements were largely ignored for years leading to huge losses (almost 50% loss on WEMA shares alone).

I also ensure that the non responsiveness of the Stockbroker is no longer condoned so as not to inhibit our stock trading plan. My team went the whole hog to run through the long and tough process of moving the stocks away from the Stockbroker that failed to provide the required portfolio advisory services. Necessary reconciliation was done and the nominal transfer accomplished which obviously is the source of the misconstrued news of that the puported disposal of WEMA emanated from.

However, it is important to situate the stock management position of Ekiti State within the purpose of purchasing those stocks in the first instance. 

We need to ask the question of why those shares were bought?

Has the purpose been realised? 

If not why are the purposes not realised?

How do we realise the purpose to ensure that the mandate to increase revenue is achieved?

These are the questions that we have answered at FHL on which those decisions were made for the interest of our dear State.

Thank you.  

OSKA Seyi Aiyeleso

Group Managing Director/CEO


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